Gas prices continue to fall, but prices for new cars reach new records

Despite falling prices, is gas still too expensive?

MINNEAPOLIS -- With fall closing in, the summer travel season is closing out -- and the pain at the pump is easing up.

Right now the national average for a gallon of gas is $3.71. According to AAA, that's down 7 cents over the past week, and the lowest it's been since the beginning of March.

Right now in Minnesota, average gas prices are currently resting near $3.65 a gallon.

AAA adds that as long as demand drops, which often happens after Labor Day weekend, more areas could start seeing gas below the $3 mark.

Though prices at the pump may be falling, when we head to the car lot it's a different story. Automotive research company Kelley Blue Book says the average price Americans paid for a new vehicle in August hit a record high of $48,301. That's the fifth consecutive month car prices have risen to record highs.

Strong demand and low inventories are driving the rise. The average price of a car is nearly 11% higher than a year ago.

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